Scottish Budget RECAP: Scottish Government confirms no limit to council tax rises in 2023/24
Scotland’s Deputy First Minister has announced an increase to income tax for the highest earners and scrapped funding for another independence referendum in next year’s budget.
John Swinney published the draft budget on Thursday, against what he said was the “most turbulent economic and financial context most people can remember”, saying an increase to the highest rates of income tax in Scotland would allow for an extra £1 billion in spending on health and social care.
He said standard and basic rates of tax would not change.
Here’s a recap of how the day unfolded.
Scottish Budget LIVE: Scottish Government confirms no limit to council tax rises in 2023/24
Tax changes
It had been leaked earlier but we now have confirmation of the latest tax changes in Scotland.
- Personal allowance Under £12,579 - pays no tax
- Starter rate £12,57 to £14,732 at 19%
- Scottish basic rate £14,733 to £25,688 at 20%
- Intermediate rate £25,689 to £43,622 at 21%
- Higher rate £43,633 to £125,139 at 42%
- Top rate Over £125,140 at 47%
Most Scots will still pay less tax than if they lived in other parts of the UK - but the wealthiest will pay more.
Some more on the scrapping of peak rail times.
Peak train fares across Scotland’s railways have been scrapped in a move that has been welcomed by the Greens.
Ross Greer MSP, Scottish Greens Finance spokesperson said: “I am delighted that we have been able to deliver this longstanding Green policy, one which will save rail users a huge amount of money during the cost of living crisis and which will help Scotland meet its climate ambitions.
“This builds on the success of the free bus travel scheme which Greens introduced for everyone under 22 earlier this year. It will play a vital role in ensuring that public transport is an affordable, attractive choice for travellers.”
FULL STORY - A fund to hold an independence referendum in October 2023 has been ditched by the Scottish Government in their budget.
Read more HERE
Some other key points
- Scottish Child Payment will remain at the current rate of £25 per week, while other devolved benefits will be uprated by the September inflation rate of 10.1% at a cost of £428 million.
- Local government will receive a funding boost of £550 million, while councils will be given the freedom to set their own rates of council tax.
- Following lobbying by business groups, business rates will be frozen in a bid to help support smaller firms.
Peak ScotRail fares will be suspended for six months to help make train travel more affordable, John Swinney announced in the Scottish Budget on Thursday.
Full story HERE
Scottish Greens Finance spokesperson Ross Greer said: “Today’s Scottish budget stands in stark contrast to the cuts, chaos and austerity of the cruel and climate wrecking Tory government in Westminster.
“We are supporting people in poverty while they lift the cap on bankers bonuses, we are investing in our climate while they are opening a new coal mine, and we are removing peak-time rail fares while they demonise rail workers.”
Commenting on the budget announced today UNISON Scottish secretary Tracey Dalling said: “John Swinney and the Scottish government had the chance to make big choices to raise more money for Scotland’s public services and deliver fair pay for those who deliver them. “Instead they opted to largely duck the redistribution of wealth we had been calling for. Our public services are on their knees due to austerity.“Each day we hear of the staffing shortages and pressure in the NHS and the stress this places on health workers. Councils have been starved of cash for years but are constantly asked to step in during a crisis, be that power cuts in Shetland or the pandemic. “‘There are some welcome measures though. A modest increase in income tax will deliver increased revenue and shows there is significant power that the Scottish government can exercise in fiscal matters.”